The Hon. (Ms.) Lakmali Hemachandra, Attorney-at-Law

¶ 01 Hon. Deputy Chairperson, the Government has brought a very important Bill for debate today: the Proceeds of Crime Bill. It is vital that we discuss it here. For over a decade, one of the strongest public demands has been that the State take action—and enact a law—to recover assets stolen from the people that have crippled our economy, especially around the 2022 bankruptcy. People demanded that stolen assets be recovered.

¶ 02 We have seen how certain politicians—some even in today’s Opposition—advance in their political careers while amassing wealth, accumulating properties and vast bank deposits here and abroad. Some are now before courts facing indictments and on bail. Theft of public wealth by politicians and complicit senior officials and business cronies became normalized. This contributed significantly to the collapse of our economy.

¶ 03 In 2023, as Sri Lanka engaged with the IMF, beyond macroeconomic policy, a Governance Diagnostic Report recommended an assets recovery law—Proceeds of Crime—by April 2024. Previous governments lacked the political will due to their links to those implicated. Our Government has promptly brought this Bill—showing clear political will.

¶ 04 The Bill strengthens the legal framework: enhancing investigative powers of Police, the Attorney-General’s Department, the Judiciary, and the Commission to Investigate Allegations of Bribery or Corruption. It creates a designated senior Police officer (DIG rank) for proceeds-of-crime investigations; defines what constitutes proceeds of crime; provides comprehensive procedures for investigation; and grants additional powers to courts regarding property. It also establishes a Proceeds of Crime Management Authority to manage seized/confiscated assets.

¶ 05 A key innovative feature is the presumption: where a person’s known lawful income and occupation cannot reasonably explain substantial assets, a rebuttable presumption arises that such assets are illicit proceeds. The burden then shifts to the person to show lawful acquisition. This addresses a major bottleneck—allowing non-conviction based asset recovery and directing recovered funds to the Consolidated Fund and, as a policy, significant portions for victim reparations and institutional strengthening.

¶ 06 We, as a Government, are proud to present this strong, detailed legislative framework.